It is a multi-step process. The first step is to create a medical “emergency” fund. This ensures
that you can afford the deductible, coinsurance, and co-pays in a pinch. You are effectively self-
insuring your part of the medical risk, but don’t dip into it unless you absolutely must.

 

An adequate emergency fund lets you comfortably elect a higher deductible and lower your
premium cost. The objective is to reap those savings going forward and build a dedicated
medical retirement fund.

While you are young, strong, and have good health and healthy behaviors, you can jumpstart
the process by electing a high deductible plan at the onset.

It also puts you on a virtuous path that lets you pay lower premiums over your lifetime and
invest the savings in an account earmarked for Medical and Health Care for yourself and your
family over their lifetimes.

All plans entail a trade-off between cost and health risks. The younger and healthier you are the
less it costs. That is important because lower-cost insurance opens up the potential to put more
money into a better saving program – High deductible health plans are a requirement for a
Health Savings Account (HSA).

The primary places to look for health insurance are your employer’s plans and the ACA’s Health
Insurance Marketplace plans. Both are required to meet basic minimum criteria. The first is
typically subsidized by your employer and the second is subsidized by the government with a
tax credit for people between 100% to 400% of the poverty rate.

There are several other alternatives that may help get affordable insurance so that you can
start your health-saving program earlier:

1. You can stay on your parents plan until you are 26.
2. Some colleges and universities offer health plans that are low cost
3. Catastrophic Health Plans to cover only the worst case until you are 30, or in a ‘hardship’
pinch after 30